Research On The Causes Of Bond Defaults Of Yong Mei Holdings

China’s bond investors have always had the belief of "rigid payment" and the belief that state-owned enterprises are "too big to fail",even if the issuer itself is not well managed,investors also believe that external support will achieve payment.With the reform and development of state-owned enterprises,the government requires "separation of government and enterprises,separation of government and capital",and the market-oriented development of state-owned enterprises has replaced the external support of the government.In the second half of 2020,some state-owned enterprises with large credit risks defaulted one after another,which had a greater impact on the inherent beliefs and credit basis of the bond market.In particular,after the "20 Yong coal SCP003" bond default event,Henan provincial enterprises and coal chemical enterprises cancelled or delayed the issuance of bonds in large quantities,which formed a systemic risk to the entire bond market.Therefore,this thesis believes that it is of great significance to study the causes of the default of the "20 Yongmei SCP003" bond.In this thesis,the relevant documents on the causes of bond default,the effectiveness of bond ratings and the early warning of bond default risk are sorted out,and the internal and external factors of corporate bond default are analyzed by applying the theory of information asymmetry,reputation theory,financial distress theory and internal capital market.On this basis,taking the "20 Yongmei SCP003" bond default event as a case study,the history of the default event of Yongmei Holdings bonds and the punitive measures of regulatory agencies are analyzed,and the causes of the default of Yongmei Holdings bonds are analyzed from both internal and external levels.The external factors for the default of Yongmei Holdings bonds are:(1)the regulator’s information disclosure regulations are not clear,(2)The long supervision of the bond market and(3)the early warning function of the rating agency are invalid.The internal causes of the default of Yongmei Holdings bonds are(1)the maturity structure of the bonds with a concentrated redemption period,(2)the high-risk debt structure,(3)the profitability dragged down by the coal chemical sector,(4)the short-term solvency of Yongmei Holdings is weak,(5)the monetary funds of Yongmei Holdings are occupied by controlling shareholders and related parties to reduce the liquidity of enterprise funds,(6)the financial resource allocation efficiency caused by the company’s cooperation with the group’s development strategy,and(7)the willingness of Yongmei Holdings to pay is weak.Based on the above conclusions,this thesis proposes that,first of all,regulators should strengthen information disclosure supervision and verification of related party behavior,rating agencies should objectively rate risk early warning functions,and finally,enterprises should pay attention to debt structure risks and pay attention to strategic adjustments to improve resource allocation efficiency.The thesis has 8 figures,29 tables,and 60 references.